Oracle reports $1.2 bn loss thanks to CEO Mark Hurd

Oracle reported fiscal 2022 Q2 results. Total quarterly revenues were up 6 percent year-over-year to $10.4 billion. Cloud services and license support revenues were up 6 percent to $7.6 billion. Cloud license and on-premise license revenues were up 13 percent to $1.2 billion.
Oracle Sparc serverOracle said it made a payment for a judgment related to a dispute regarding former CEO Mark Hurd’s employment, that resulted in a third-quarter loss of $1.25 billion versus a profit of $2.44 billion a year earlier.

Oracle’s Q2 results were adversely impacted by the payment of a judgment related to a 10-year old dispute surrounding former CEO Mark Hurd’s employment. That payment resulted in a Q2 operating loss of $824 million.

“These results are being driven by the 22 percent growth of our infrastructure and applications cloud businesses which are approaching $11 billion in annualized revenue,” Oracle CEO Safra Catz said. “We have 8,500 Fusion ERP customers with revenue growing 35 percent, 28,400 NetSuite ERP customers with revenue growing 29 percent, and our Gen2 infrastructure businesses are growing even faster—and accelerating.”

“Oracle’s Autonomous Database and new MySQL Database with HeatWave are the world’s two highest-performance databases,” said Oracle Chairman and CTO, Larry Ellison. “Because of their extreme high-performance, both products present huge growth opportunities for our cloud infrastructure business.”

Spending on cloud technology has risen, benefiting Oracle and other firms such as Salesforce, Google, and Microsoft.

Revenue at Oracle’s cloud services and license support unit, its largest, rose to $7.55 billion in the second quarter from $7.11 billion a year earlier. This is expected to grow between 6 percent and 8 percent in the third quarter.

Oracle has been ramping up investments in data centers worldwide, especially in government-focused ones, CEO Safra Catz said on a conference call with analysts.

About 75 percent of Oracle’s Enterprise Resource Planning (ERP) customers have not transitioned to the cloud, and the company has a very good chance of shifting them over and boosting its ERP revenues, said Scott Kessler, an analyst at Third Bridge.

The company expects current-quarter profit between $1.19 per share and $1.23 per share. It expects revenue of $10.7 billion to $10.9 billion, according to Reuters calculations, above estimates of $10.56 billion.